Phạm Tuấn Phong and Đồng Thị Minh Thắng, two of the 12 individuals arrested in connection with a massive multi-level marketing fraud scheme. — Photo courtesy of Lạng Sơn Provincial Police

LẠNG SƠN — Police have arrested 12 individuals in connection with a massive multi-level marketing (MLM) fraud scheme that allegedly involved thousands of victims across the country and transactions worth trillions of đồng.

The arrests were made by the Lạng Sơn Province Police in coordination with the Ministry of Public Security, HCM City Police and Đồng Nai Province Police. Investigators say the suspects violated regulations on MLM business practices, causing widespread financial damage.

Preliminary findings identified H.W.Y., a Taiwanese national and director of Ame Global, as the alleged mastermind behind the operation. The company promoted a product called Ngưu Chương Chi, marketed as a dietary supplement with health benefits and a financial return, through a binary MLM system that promised high commissions and daily bonuses for sales.

Ame Global, headquartered in Kaohsiung, Taiwan (China), operates a Vietnamese branch, WIN ALL Trading Co., Ltd., based in HCM City's District 7. Customers were recruited through referral links to register on a company website where they could invest VNĐ14.8 million (US$570) in exchange for the Ngưu Chương Chi product.

The system promised investors up to 10 per cent daily commission on global sales – potentially reaching up to $1,000 per day – regardless of whether they recruited others. Participants were also offered bonuses of up to 5 per cent of the income generated by members in up to 20 subordinate levels.

Since April 2024, the scheme has reportedly expanded to include over 9,000 participants, including more than 7,000 Vietnamese, nearly 2,000 Malaysians and several Taiwanese nationals. Authorities estimate the total amount transacted through bank accounts reached trillions of đồng.

Based on the evidence gathered, Lạng Sơn Police have charged the individuals under Article 217a of the Penal Code, which governs illegal MLM practices.

Those arrested in connection to the scheme include Ngô Hữu Tháp (born in 1974 in Lạng Sơn), Lăng Thị Thùy Dung (1980, from Đồng Nai Province) and eight people from HCM City: Lưu Quốc Ngọc (born 1983), Trần Chấn Quyền (1988), Đàm Vĩ Thịnh (1988), Từ Bội Diều (1993), Phạm Tuấn Phong (1984), Tống Thị Hồng Thắm (1982), Kim Vĩnh Hào (1985) and Đàm Diệu Phát (1989).

Đồng Thị Minh Thắng (born in 1982, from Thái Nguyên Province) and Nguyễn Đăng Bắc (1975, from Bắc Ninh Province) were also arrested in connection to the case.

Seized assets include one car, six computers, 14 mobile phones, two iPads, 85 cartons containing nearly 15,000 empty product boxes, over 2,000 bottles of Ngưu Chương Chi of unknown origin, 35,000 labels and various packaging equipment and documents used for product manufacturing.

The operation allegedly constitutes a large-scale transnational MLM crime ring, with connections across multiple provinces and links to foreign operators.

Investigations are ongoing to gather further evidence and uncover additional accomplices. — VNS